Everyday Banking
What is the purpose of chequing accounts?
To provide a place to store daily spending money. Typically used to hold money used to pay bills, make regular purchases, and ATM transactions. Not recommended for long-term money storage.
What does a GIC stand for? What is its purpose?
Guaranteed Investment Certificate. It is a safe and secure investment and works like a savings account with the opportunity for accruing more interest based on term length.
What is another name for the Prime Rate, and who determines it?
AKA Overnight Rate. Influenced by the policy interest rate set by the Bank of Canada.
What is the maximum $ amount we can provide to members at MCU for a Credit Savings Plan?
Up to $5000
True or False: In Manitoba, all credit Union members can access any credit union ATM for no extra cost.
True
What MCU account do we recommend for a 21 year old going into their first year of college? How much do they pay in fees?
Cub Account - for Free!
What is a secured loan?
Allows a member to borrow money from the CU to pay for personal expenses, and then repay those funds in smaller installments over time.
Which of these are tax-deferred?
a. TFSA
b. RRSP/RRIF/RDSP
c. RESP
b. RRSP/RRIF/RDSP
What is the purpose of a Fresh Start Loan?
For members who may have collections or derogatory items within their credit history, to renew credit profile so they can borrow again in the future.
What is the difference between voting and non-voting members at MCU?
Voting - Indigenous members only. Have the opportunity to vote at out AGM to provide input in MCU direction and services offered.
Non-Voting - Non-Indigenous members, who enjoy the same benefits and services as our voting members.
What does the acronym "ATM" stand for?
Automatic Teller Machine
What is an overdraft? What does it do? What purpose does it serve?
An extension of credit granted to a member when their account reaches zero. Allows the member to continue withdrawing money even when the account has insufficient/no funds, with a limit and interest on the borrowed amount. Usually used to meet small cash flow gaps and unexpected expenses.
What is an Estate Account? What is the purpose?
An account for the executor to manage the deceased member's estate. The purpose is for the executor to keep track of incoming and outgoing funds and provide records that may be required for tax purposes, etc.
Name all the requirements a person must have to open an account with MCU.
1. Valid ID (must have photo, must have current address)
2. $5 for Member Share
What entity provides regulatory oversight for credit unions in Manitoba? Why?
Deposit Guarantee Corporation of Manitoba (DGCM). They provide 100% guarantee of all credit union deposits held in Manitoba and sets regular examinations and rigorous standards for all credit unions to meet.